Tallgrass Energy to build Gulf Coast storage terminal

Tallgrass Energy will develop a new crude oil pipeline from Cushing, Oklahoma to the St. James, Louisiana refining complex as well as a separate new export-capable liquids terminal.

The proposed Seahorse Pipeline is expected to be 30 inches in diameter and 700 miles long, with the capacity to transport up to 800,000 barrels of crude oil per day from Cushing to the Louisiana Gulf Coast.

It will operate as a common grade batch system that, along with Tallgrass' Pony Express Pipeline, will ensure domestic refiners and international markets have access to clean barrels from five different production basins.

The new storage terminal, Plaquemines Liquids Terminal, is a joint development project with Drexel Hamilton Infrastructure Partners and is being structured as a public-private partnership. It is expected to be fully operational in the second quarter of 2020 and is permitted for up to 20 million barrels of storage.

It will have the ability to fully load and unload post panama vessels and barges on its multiple deep-water docks. Tallgrass anticipates building a separate offshore pipeline extension that would give the terminal the added capability of loading VLCCs by the third quarter of 2021.

Tallgrass Energy president and CEO David Dehaemers says: 'The Seahorse Pipeline and Plaquemines Liquids Terminal projects build on our strategy to provide diversity of supply and greater market optionality to our customers. These projects provide highly desired take-away capacity from Cushing to the St. James refining complex, providing interconnectivity to more than 2.5 million barrels per day of refining capacity and access to international markets.'

The company expects to launch its initial open season for the pipeline on August 15, which will run for 45 days.